COUNCIL QUASHES HUBBELL HUBBUB.

Byline: Rick Orlov Daily News Staff Writer

The controversy over Los Angeles' hiring of Whitewater figure Webster Hubbell came to an end Wednesday, with the City Council deciding against placing any blame on former Airport Commission President Ted Stein or other Airports Department officials.

Instead, the council adopted a report embracing procedures already in place requiring that city commissioners be advised as to the limits of their powers.

But the debate brought out strong emotions among a number of officials, particularly council President John Ferraro, Councilwoman Ruth Galanter and City Controller Rick Tuttle.

``This was a standard retainer contract,'' Ferraro said. ``There was nothing a bit unusual about it. We paid Mr. Hubbell $24,750 and he got $58 million in return for the city from the airport. I'd say that was a pretty good deal.''

But Galanter argued that the problem was that Stein and Airports Department General Manager Jack Driscoll appeared to be going around established procedures by hiring Hubbell for an amount under the $25,000 figure that would have required making the contract public and subject to approval by the Airport Commission.

``We were dealing with some tough competition and we didn't want them to know what we were planning,'' Ferraro said.

Hubbell's hiring in 1996 became the subject of controversy after he was convicted of overbilling while an attorney at the Rose Law Firm in Arkansas.

The city immediately canceled its contract with him, and Tuttle questioned billings Hubbell had submitted and whether he had performed the work he claimed.

``Our view is that Hubbell was paid public money not linked to his market value and the level of service he represented is materially false,'' Tuttle told the council.

At the same time, Tuttle defended the cost of the audit - more than twice what had been paid Hubbell - as the price of defending the integrity of the city's process.

However, Ferraro questioned the accuracy of the audit, saying it failed to mention that he had been told by Stein and Driscoll of their plans to hire Hubbell.

Stein, in the City Council audience witnessing the debate, said he was pleased that any mention of his involvement has been dropped.

``I would say, let the record speak for itself,'' he said. ``I don't believe I did anything wrong.''

At the time, Stein was also a special adviser to Mayor Richard Riordan. He dropped out of that job and the Airport Commission when he launched an unsuccessful challenge to City Attorney James Hahn last year.

Most recently, Riordan has nominated Stein for a post on the Harbor Commission. That nomination is pending.

Stein supporters have questioned the timing of the consideration of the Hubbell report as a way to embarrass him.